Retirement Funds

After years of hard work, “giving away” your retirement fund can feel daunting.

But did you know retirement plans with pre-tax earnings are often subject to heavy taxation when left to your children or others? If you have no spouse or dependent child to roll your tax deferred investments over to when you pass, the total value of those accounts must be reported as income on your terminal tax return. If no arrangements are made, much of your retirement money will go to the CRA.

You can eliminate this taxation through retirement plan gifts — supporting causes you truly care about — while leaving other assets to family members. By making the U of A the beneficiary of your RRSPs and RRIFs, income tax on those assets could be eliminated. The tax will still have to be paid but the charitable receipt could offset most or all the tax payable.

Benefits of making a gift through retirement funds

• Update beneficiaries easily and at no cost
• Your retirement account funds are given to your beneficiaries directly and outside of the estate administration process
• Designating the U of A as a beneficiary provides a charitable tax receipt that offsets taxes owed

How it Works

A donor designates the University of Alberta as the beneficiary of an RRSP worth $300,000:

1. The tax credit from her gift can be used to offset taxes owing in the year of the donor's death and the preceding year (if required).
2. The tax credit offsets the tax on the donor's estate from the RRSP income - freeing up more assets for her loved ones.

Contact us today

Call 780.492.7400 or 1.888.799.9899 | Email giving@ualberta.ca